My return was rejected due to FED_Taxable_Inherited_IRA but I did not inherit an IRA.

[Aggie]

The FIX IS IN!! Re-Filed this morning at 0613 and received confirmation it was accepted at 0639. As soon as I opened TT Deluxe on my Windows 10 PC it did an update. The Version for that update is [phone number removed]. After update my return opened and I went directly to file. I did NOTHING to my work, did not review any forms or run review again. Good luck to all and appreciate all the comments and sharing of ideas, outcomes etc. Gig Em Aggies!

[TU2021]

I re-submitted e file yesterday. Federal accepted in 10 minutes and State accepted a few hours later. All done! The glitch was fixed!

[terbnor]

I just re-submitted but before I did, I had TT recalculate my underpayment penalty, it had increased by $1.  I did not want to be bothered some months from now with a bill from the IRS for this trivial sum.  It had occurred to me that TT should pay any increases in penalties incurred due to their bugs, but that is probably wishful thinking.

[stewlev]

I just resubmitted my return with no changes from the two times it bounced (3/6/21 at 11:45 CST). Within 25 minutes IRS accepted it.

[m2p]

Resubmitted on March 6, 2021, and within a couple of hours received notification that fed tax filing had been accepted.

[Dave the Cat]

Also had the same problem as most on this thread (backdoor Roth IRA, no inherited IRA).  Resubmitted 3/5 after installing the update on 3/4 and after going through the IRA-related questions for income and deductions, but without deleting anything.  No change to tax owed.  Rejected twice earlier this week, but accepted last night within 90 minutes.

Windows 10, TurboTax deluxe download, version [phone number removed].

Had this failed, I was planning to try and going to the free fillable forms on irs.gov, see https://www.irs.gov/pub/irs-pdf/p5274.pdf.  It's a subset of Free File, but without the income limitations the Free File program imposes.  Had that worked, I would have recommended it for all and sundry. Fortunately, that does not seem necessary, given the Intuit has fixed the problem.   (Interestingly, Intuit runs the Free Fillable Forms.)

Would still appreciate a refund of at least part of the purchase price, not for the error, but because Intuit failed to keep us adequately informed and should have but did not discourage us from trying to eFile before they fixed this.  Time consuming and frustrating.

Grateful as well for the community on this furum.

Cheers,

-dave

[ivan23]

With the amount of frustration, stress and time consumed expressed by those posting, I agree a partial refund is in order.

 I’ll certainly take this into consideration next tax year.   

[fitteacher]

I agree. Turbotax Premiere cost $69.99 (plus tax) and the state filing was $25 (plus tax).  This frustration and aggravation led me to a CPA whose minimum charge was $300.  I believe that Intuit's Turbotax was remiss when not letting on that there was a glitch.  I would certainly appreciate a refund. 

[mikerita69]

In trying to fix the rejection and editing the IRA info , I noticed that all the boxes retained the original inputs except the box that inquires if the distribution was a RMD. Selecting that box, exiting and then coming back to edit it again always finds the box unmarked.  ??

[T2013rcp]

It's late afternoon of March 6 and mine was rejected for the forth time about and hour ago.  So nothing has changed.   I have no inherited IRA's

[Kthyd99]

BINGO !  I couldn't have summarized my situation any better. It all lines up.

[RobertMaxB]

Hi, T2013rcp

On you still having rejected return--- it seems like 90% of us are having success getting past this bug.

What most seem to be doing and getting success is:

(1) Make sure you've got the download / update (if you're doing desktop TT).

(2) Seems to not always be necessary, but--- try deleting all 1099's and Form 8606, then run through all questions to re-build the 1099's and 8606's.  The questions seem to help build the forms correctly.

(3) Some ppl report having to try twice, but you've tried four times.

If above isn't helping--- sounds like you may have an uncommon form of the bug that they haven't fixed yet?

Good luck---

[Ash45]

I updated software on Turbotax home and business and resubmitted my return. Accepted without any issues.

[at19649sta]

I got the same error then waited until after March 5. My return was still rejected. After the third call to Turbo Tax, they took what they called a diagnostic copy of my return and said they would get back to me in 72 hours. it has been 72 and I have not heard from them. I will try for a refund and find some other way to file my return. I have been using Turbo Tax for 15 years because it is convenient to transition from year to year.

[ReneeM7122]

The error has to do with a software issue on Form 8606 which has been fixed.  For reference and for anyone who needs this information, here is how to fix the problem:

1. Update TurboTax if you are using a desktop version. 
2. Delete your 1099-R forms and reenter them. 

Once you go through the final review, it should work.  1099-R information, final review and refiled again. It was accepted by IRS.

Here is a TurboTax article about inherited property.

@Ash45